Your answer is correct. The price a firm paid to acquire an asset is known as the market value.
That's correct! The price a firm paid to acquire an asset is called the market value. To arrive at the market value, the firm generally considers the current market conditions and determines the price at which they should buy or sell the asset. The market value is influenced by factors such as supply and demand, as well as the overall economic conditions. This value is different from the book value, which represents the value of an asset as recorded in the company's accounting records, or the fair value, which represents the estimated value of an asset based on its current condition and expected future benefits. The markup price, on the other hand, refers to the additional amount added to the cost of an item to determine its selling price.
